EUR/GBP Steady Near 0.8650 as Risk Sentiment Weighs

Key Moments

Euro Struggles to Extend Gains Against the Pound

The Euro (EUR) is edging higher against the British Pound (GBP) for a third consecutive session on Friday, yet attempts to build traction beyond the 0.8655 level are falling short. The broader market tone remains defensive as investors react to negative headlines from the Middle East, limiting demand for the Euro across major pairs. In contrast, soft domestic housing data in the United Kingdom has not provided a meaningful lift to the Pound.

Geopolitical tensions in the Middle East have been a persistent drag on the single currency this week. Brent Oil prices holding above $90 are adding to the cost burden for oil-importing economies in the Eurozone, weighing on sentiment toward the Euro. Reports that Hezbollah has rejected a ceasefire proposal in Lebanon have further reduced expectations for a quick resolution to Iran’s war and a rapid reopening of the key Strait of Hormuz. This backdrop is undermining risk appetite and keeping Euro bulls cautious.

UK Housing Data Fails to Support Sterling

On the UK side, fresh figures from the Halifax House Price Index released earlier on Friday showed an unexpected setback in May. Prices fell 0.1%, marking a fourth consecutive monthly drop and contradicting market expectations for a 0.1% increase. On a yearly basis, house prices rose 0.5%, slightly above the 0.4% rate recorded in April but well below the 1% gain anticipated by consensus forecasts. Despite the surprise weakness, the data has not translated into a decisive advantage for the Pound against the Euro.

Technical Picture: Symmetric Triangle Points to Risks on the Downside

EUR/GBP is quoted around 0.8650, reflecting a neutral short-term stance as prices compress into a series of higher lows and lower highs, forming a symmetric triangle pattern. This structure is typically interpreted as a continuation pattern, and under that framework, a break to the downside is currently seen as the more probable outcome.

On the 4-hour charts, momentum gauges are mildly constructive but hint at waning bullish strength. The 14-period Relative Strength Index (RSI) is drifting back toward the neutral 50 mark, while a slightly positive Moving Average Convergence Divergence (MACD) reading suggests only modest, rather than decisive, upward momentum.

For buyers, the first key objective is a clear move above Thursday’s peak at 0.8655, which would open the path toward the upper boundary of the triangle, now located near 0.8685. Beyond that, attention would shift to the May 19 and May 29 lows and the nearby 0.8690 zone.

On the downside, sellers are likely to encounter initial support in the band between the lower edge of the price channel at 0.8635 and Wednesday’s trough around 0.8630. A break below that area would turn focus to the important support zone between 0.8610 and 0.8620, which corresponds to the year-to-date lows.

Euro Performance Against Major Currencies Today

The table below summarizes today’s percentage changes in the Euro against a selection of major currencies. According to these moves, the Euro has shown its strongest performance versus the Australian Dollar.

The heat map illustrates how each currency has performed against the others. The currency listed in the left-hand column acts as the base, and the one shown in the top row is the quote. For instance, selecting the Euro on the vertical axis and moving across to the US Dollar cell provides the percentage move for EUR (base)/USD (quote).